It’s a moment you dread. Your top employee has walked into your office and sheepishly informed you that they plan to leave for another opportunity elsewhere. They’re respectful and professional in the process, but you’re left to wonder: what’s the real reason they’ve chosen to quit?
Retention should be a key part of your recruitment strategy. Replacing employees can get shockingly expensive. Cost projections on recruiting vary by industry and by the specific situation. However, even low-end estimates point to an extremely costly situation.
One projection suggests that mid-range positions cost about 20% of the employee’s annual salary to replace. Lower-level positions cost less, around 16% of the annual salary. Still, even on this low end, replacing a team member earning $25,000 would cost $4,000 (going by the 16% estimate). That’s still a sizable figure, especially if you have to make these hires often.
Clearly, taking steps to keep your employees happy will pay dividends in the long run. That’s why it’s important to take a real look at the reasons people leave you for other opportunities. If you’ve faced a string of resignations lately, it’s time for some soul-searching. You need to discover why they quit.
Here are a few common possibilities.
Compensation should be the first place you look if you have trouble keeping good employees. Many factors go into employee satisfaction, of course. But you can’t ignore a basic fact about the relationship between you and your workers. This connection rests on a single, simple concept: they work, you pay.
Know the market value for each position in your firm. In addition, understand when it’s in your interest to exceed this benchmark. Identify top talent and take steps to pay them according to the value they offer the company.
Once you assure yourself that you are paying at least the market rate for your employees, you can look to other factors to keep your employees longer. Culture is another obvious culprit when an employee resigns.
Make sure the workplace remains a welcoming and safe environment. Keep interactions, constructive, and professional. As long as your employees enjoy coming to the office, you have a good chance to hold onto them over the long haul.
Lack of Organization
People like to feel safe and supported. An improvised structure and a freewheeling culture might work for some workers. But others might find this frustrating and seek out more structure somewhere else.
The key is to find some middle ground. You want to provide an adequate level of organization without stifling your best talent.
No Advancement Opportunities
Your best employees will be ambitious, constantly seeking to advance their careers. Encourage this behavior. It serves as the engine for their best performance.
However, you have to give them ways to express this ambition. If they start to feel stuck (if that engine isn’t getting out of neutral), they will look for other opportunities.
Don’t let this happen. Make sure you offer adequate chances to advance within your organization. This way, your best employees can drive their careers forward under your watch.
Poor Company Prospects
Your employees succeed when you do. When the company is growing and has adequate resources, your workers will feel their positions are safe. However, if you hit tough times, your top talent might start looking for a more secure situation.
Your best bet in these situations: identify your best workers and focus resources on them. Assure them that the company’s long-term prospects remain strong and take steps to keep them in the fold. You might not be able to keep everyone, but you can hold onto your go-to team members.
Had a key employee quit? It can be a difficult problem to overcome. However, it gets easier when you have a strong recruiting partner, like PrideStaff. They can quickly find the perfect candidate to replace your departing employee.
Contact PrideStaff today to find out how they can deliver the ideal recruits for your open positions